A Look At Skyward Specialty Insurance Group’s (SKWD) Valuation After Expanded E&S Property Excess Coverage Move

Skyward Specialty Insurance Group (SKWD) has expanded its E&S Property offering by adding Excess coverage. This move is aimed at supporting layered programs for technically complex, non catastrophe property risks and aligns with its "Rule Our Niche" focus. See our latest analysis for Skyward Specialty Insurance Group. Recent moves such as the new Excess E&S Property coverage and the term loan facility to support an acquisition come at a time when the 1 month share price return is a 9.09% decline, even as the 3 year total shareholder return of 150.84% points to strong longer term gains. If this kind of specialty insurance story has your attention, it could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership. With Skyward Specialty’s shares down 9.09% over the past month but showing a 3-year total return above 150%, and trading below the average analyst price target, is there still a buying opportunity here, or is future growth already priced in? Most Popular Narrative: 26.8% Undervalued With Skyward Specialty Insurance Group closing at US$46.48 against a narrative fair value of US$63.50, the current price sits well below that appraisal and frames a clear valuation gap for investors to assess. The continued increase in frequency and severity of natural catastrophes is driving heightened demand for tech-enabled specialty insurance solutions and captives, particularly in underserved sectors like automotive and agriculture, which supports strong top-line premium growth and recurring revenue for Skyward going forward. Read the complete narrative. Curious how higher revenue growth assumptions, slightly lower margins and a reduced future P/E multiple can still support a higher fair value? The most followed narrative lays out a detailed path that leans on faster premium growth, disciplined underwriting and a richer earnings profile over time, all run through a 6.96% discount rate. Want to see how those moving parts fit together in the full valuation story? Result: Fair Value of $63.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on execution. Softer pricing in some property and casualty lines, or any stumble in key MGA and program manager partnerships, could quickly challenge that thesis. Find out about the key risks to this Skyward Specialty Insurance Group narrative. Another View: Multiples Send A Different Signal Our DCF-based fair value of US$120.93 paints one picture, but the current P/E ratio of 14.5x tells a more cautious one. It sits above the US Insurance industry average of 12.6x, yet below a fair ratio of 16.5x and well under the 28.5x peer average. This combination points to both upside and mispricing risk if sentiment shifts. Which signal do you trust more right now? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:SKWD P/E Ratio as at Jan 2026 Build Your Own Skyward Specialty Insurance Group Narrative If you are not fully on board with this view or prefer to test your own assumptions against the numbers, you can quickly build a custom thesis using Do it your way. A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Skyward Specialty Insurance Group. Looking for more investment ideas? If Skyward Specialty has you thinking differently about your portfolio, do not stop here. Use the Simply Wall Street Screener to uncover focused opportunities across sectors. Target income-focused opportunities by reviewing these 12 dividend stocks with yields > 3% that may suit a portfolio built around regular cash returns. Spot potential growth stories early by scanning these 3526 penny stocks with strong financials that match your risk tolerance and time horizon. Position your portfolio for long term trends by checking out these 110 healthcare AI stocks that blend technology and healthcare exposure. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.